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May 2008

May 28, 2008

14 Ways People Screw Up Focus Groups

Common Focus Group Mistakes By People Who Don’t know Better, and by those who do, but make them anyway.

Because sometime doing great work is first an understanding and preventing the ways it can go wrong.

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1. Bringing qualitative tools to a quantitative fight - If you want to know how many  
people will like  something, focus groups are not the tool. If you want to understand why
they will like it, they are.

2. Treating research as an expense not an investment - yeah, I know it goes on the expense side of the ledger. But you have to make the “go” decision for research fully expecting to get a return on your investment of time and money. If you can’t understand how research will either a) save you money or b) help you spend money more effectively, don’t do it.

3. Thinking moderators have to look like the target participant group - (Black moderators for African American groups, female for women, etc.) Participants will talk a lot more if they think there is a high likelihood the moderator might not “get it”. And the great moderators will play up that perspective.

4. Trying to moderate your own groups. You can’t be objective about your own organization, or tell the CEO he’s whack when it comes to including questions that are irrelevant to the objectives. See this post to understand what a professional moderator can bring to the table.

5. Using the Moderator as a vendor rather than a partner. Most experienced moderators have been through the mill a few times, and have seen your problem or situation before. They will have some insight regarding the way the groups should be organized to help you get the most from the process. They will have recommendations as to types of questions, ways to dig deeper, and questioning techniques no one in your organization has ever heard of. You don't hire a doc and tell her how to do the surgery.

6. Using the same moderator for every project - sure the wonks in engineering are comfortable with him, but as much as I hate to admit it to my faithful clients, fresh and diverse moderating perspectives can mean more useful results and better marketing decisions. They will make you think and evaluate in different ways.

7. Going with the low bid - This is especially prevalent with companies that don’t have a lot of experience with focus groups, and have a hard time understanding the difference a moderator can make to the overall success or failure of the project. You will pay more for the better moderators, who charge more because they can, sort of like the best surgeons. They bring more value and more experience and will do a more complete job. All the great moderators will admit they a) broke into the business by charging less, and b) were nowhere near as good then as they are now. If you hire an inexperienced moderator, make no mistake about it, you are paying for their training. Be careful. It takes more training and certification to become an Equine Sports Massage Therapist than it does to become a “moderator”.

8. Trying to do too much with the groups. The temptation is always there. While we have customers in the room let’s ask them what they think of our website! Don’t do it. Stick to the project objectives, and go deep, not broad. You’ll get much better understanding that way. Give the participants time to go beyond the initial, top-line answers.

9. Not allowing time for spontaneous discussion. Sometimes the participants know better than you what you need to be talking about. Listen. Don’t try to control every second of the discussion.

10. Too much diversity - Who can argue against diversity? I can. Sometimes you should NOT mix disparate groups. If you are a college and you want to understand what high school juniors and seniors are looking for in your website, you will not want to blend those two groups of students together in one group; they are at two separate points in the college decision process, and you need to understand BOTH positions.

11. Not enough organizational diversity in the back room. The people viewing the groups need to come from all over the organization marketing, customer service, operations, information technology - getting a variety of perspectives and experiences. They will all hear different things during the groups, and the ensuing reconciliation of ideas and brainstorms can be richly rewarding. Note: if the CEO comes you'll have a lot of people there looking serious and taking notes. Encourage that.

12. Not taking advantage of the energy in the back room following the groups. Yeah, I know it’s 10:00 and everyone wants to go home, chill and watch Leno, but take 15 minutes and list the top clarifications, confirmations, surprises and insights derived from the groups while the information is still fresh. Then get together early the next morning and talk about it some more.

13. Depreciating participant opinions because they a) aren’t consistent with yours, or b) come from someone who is wearing stretch pants that could cover the state of New Jersey. Listen to what the participants are saying; don’t discount their opinions because of their socioeconomic status, because they don’t look like you, or because they frequently dangle modifiers.

14.  Trying to quantify the findings - if you catch yourself saying “well, half the group said they would buy...”, lie down until the impulse passes. Instead, seek to understand what triggered that decision, and how you can induce more of them.

While these are some of the common mistakes, there are many more uncommon ones that can be just as devastating to the efficacy of the results. In fact, the biggest mistake companies make is never doing focus groups at all, because they a) don't understand the value that can be added, or the insight that can be derived, or b) don't want to spend the money. This is no less foolish than the General who wants to rush to the attack because he doesn't want to take the time and energy to look at the aerial reconnaissance photos of the enemy position.

Better marketing is always achieved by those who first take the time to understand. 

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May 23, 2008

Customer Service Gone Horribly Wrong

My wife, young son and I took this afternoon off to visit the neighborhood Carmike Cinema to see the latest Indiana Jones movie, Indiana Jones and the 2008-05-17t171613z_01_nootr_rtridsp_2_entertainment-cannes-indiana-col Kingdom of the Crystal Skull. It promised to be, as one reviewer said, a "rip-roaring geezer romp"! We were excited! My older son had seen the movie Wednesday at a midnight showing, but mentioned the theater had some problems and Indiana Jones did not actually begin until 1:30. That should have been a red flag.

We picked up the tickets early, to prevent having to wait in line on a busy holiday weekend. To ensure we could sit together in what was bound to be a packed theater, we arrived 20 minutes early.

There are about six registers in the theater concession area, but there was one line open for food. This in the same theater that ran out of popcorn when we saw Spiderman 3. Have you ever heard of a theater running out of popcorn - a cash cow that reportedly pads their returns with a 90% profit margin? This same theater has fired teenagers who do not upsell their secret shoppers. The people in front of us became exasperated and went on to their movie. Lost revenue. Others saw the line and never joined it. More lost revenue.

I remembered that the last time I had visited this cinema one of the urinals in the men's room had been ducttaped "out of order". Ugh. Why didn't I think of that before?

When we finally made it to the front of the line with 5 minutes to spare, the poor overworked and underappreciated teenage concessessionista spilled my son's popcorn all over the counter, cash register and floor in front of the only open window. The people behind us in line were starting to make unpleasant noises. No one was there to clean up the mess.

When we finally had our food, we moved on to the ticket taker - who was nowhere in sight! People were standing there, clutching their tickets, unsure which of the ten theaters was showing their movie. I noticed the movie names and times were listed on marquees over the doors, but was told that information was not necessarily correct. There was no one to ask.

We decided to venture into the theater that mentioned our movie and time, and hope it was the right one. Previews were playing, and they suddenly stopped dead. The theater went pitch black. A tremulous female voice asked out loud, "Is this Narnia"? Patrons were trying to sit, but could not see. Some opened their cell phones and used the display light to guide their way to empty seats.

Fed up, and losing the modicum of patience I had left at that point, I went looking for an employee. No one. No ticket agent. No manager. Only the poor beleaguered concessionista and the lady taking ticket money up front.

I went back to my seat. Previews started again, and the manager came in and announced in a loud voice that this movie was to be Indiana Jones, and anyone hoping to see Narnia needed to come with him to the right theater. Grumbling, several people left with him. Others muttered they were never again returning to this theater. I wondered who could blame them.

This time when they pointed out the fire exits, I paid attention.

The movie, thankfully, showed without interruption. When it ended, as we were leaving we saw the manager outside having a cigarette as new patrons were entering. There was still only one popcorn line open.

Across town, there is another movie theater, owned by Regal, which is a completely different experience. It shows the exact same movies. Customers pick up their tickets, move quickly and efficiently through concession and are pointed to the correct theaters with ease.

According to its web page, Carmike has 283 theaters and 2427 screens in 37 states. Monday, May 12, 2008, Carmike reported a loss of 4.3 million dollars (or .34 a share), compared with a loss of 3.7 million in the same quarter a year ago - this while their general and administrative expenses are down! (On Carmike's own website, the most recent financial information is from 2005. They update their movie listings and times, but not their financial information.)

So Carmike is reducing employee and overhead expense. But at what cost? There are two ways to go out of business: your costs can be too high - or your revenues can be too low. Let's consider this issue for a second.
  • What is the opportunity cost of running out of popcorn for Spiderman 3?
  • What is the lost revenue when someone notices one concession line is open but is twelve people deep, and he decides it's not worth the wait?
  • What is the lost revenue when the local newspaper reports the theater is firing teenagers for not upselling the supersizes and disgusted parents and their friends stay away?
  • How much revenue wil be lost when today's customers tell their friends about their Carmike experience, and those friends head to Regal for their Indy movie?
  • And how much revenue will be foregone when patrons decide that the convenience of this Carmike theater is not worth the slipshod maintenance, the slow, crappy service, and they drive 15 minutes across town to the cleaner, quicker Regal theater that is showing the exact same movies?
The lesson? If you think it's expensive to train employees, keep the physical property maintained, hold sufficient staffing levels, and sustain high standards of service, consider what it costs when you don't.

And think about what is happening to Carmike.


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May 21, 2008

Good Enough is NOT...

Too often in marketing, we stop short. We do enough to get the basic job done, but before we have created something remarkable. The goal of this blog post is to make you take a look at every thing you do - at ALL of your creative output - and ask yourself two questions:

1. Is it "wallable"?
2. Does it have a wienie?

If you're not satisfied that the answer to those two questions is YES - get back to the anvil and keep pounding. There is already too much mediocrity out there; we don't need any more.

Aim to amaze. Shoot to thrill. 

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May 14, 2008

New Rules of Viral Marketing

David Meerman Scott has written an excellent E-book entitled "The New Rules of Viral Marketing."

It's available in PDF format. Download it, read it and live it. Pass it on to your friends and clients who may be interested.

Unleash the virus! It's too good to keep to yourself.

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Customer Service an Afterthought to Sales?

Remember the old adage that a happy customer will tell one person; an unhappy one will tell 10?

Change that to "A happy customer will tell one person - an unhappy one will tell 1000."

And then it will get tweeted so that 2200 more see it.

Web 2.0 has changed forever the game of customer service. Are you taking pains to promise the moon, and then overdeliver?

Are you making sure your clients understand the stakes of screwing up now?

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May 12, 2008

Viral - Permission - Marketing

Take a look at this video that suddenly has vaulted to the top of YouTube's "most viewed", snagging 1.4 million viewers last week - all of whom...

Clicked on the "play" button themselves- and forwarded it to friends.


This was a spot that was put together for Levis by Cutwater, the cool San Francisco advertising company that created the famous Ray-Bans video with the guy catching sunglasses on his face.

This is what Seth Godin is talking about in "Permission Marketing" - a paradigm in which we are no longer forced to sit captive while old media waste our time with ads that are neither interesting nor relevant. Instead, we willfully, even cheerfully watch ads that are provocative, fun and stimulating.

What are you doing with your marketing? Are you mired in the same old "interruption-based" media, doing the same old ads that most of the viewers ignore? Because if you are not actively dreaming up ways that you can get the permission of your customers and prospects to market to them, you just might be facing your own fight for relevance sooner rather than later.

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May 09, 2008

Perception is Reality

We have a saying in marketing research that "Perception is Reality".

This means that in the world of marketing, perception is everything, even if it is wrong. People make purchase decisions everyday based upon what they "think" or what they "know" - which is their interpretation of the world around them, through their lens. That it may be factually incorrect is irrelevant, and may be costing YOU their business.

Which is why it is always important to test regularly the perceptions of clients and customers against the reality that you know, and bring the two into reconciliation.

But, as we can see in this video, sometimes the testing process can be a little painful.

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